Rating Manual section 6 part 3: valuation of all property classes

Section 434: game farms

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

1. Scope

1.1 For the purposes of this section, the term Game Farm should be taken to mean any operation that raises game birds on a commercial basis for sale.

2. List Description and Special Category Code

List description: Game farm and premises

BUT: M

SCAT code: 112

Suffix: G

Primary description code: MX

3. Responsible Teams

3.1 This is a Unit Class. Responsibility rests with the appropriate Unit Valuation Officer for implementing the scheme as set out within the relevant practice note. Units must have regard to effective coordination, as detailed within Rating Manual – Section 6: Part 1:3.5.

4. Co-Ordination

The Game Farm class co-ordination team has overall responsibility for the co-ordination of this class. You can find the contact details here (P:CEO1\Intranet\Reval 2017\VP & CCTs). The team are responsible for the approach to, accuracy and consistency of valuations. The team will deliver practice notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating lists.

Caseworkers and referencers have a responsibility to:

follow the advice given at all times – practice notes are mandatory

not depart from the guidance given on appeals or maintenance work, without approval from the co-ordination team

seek advice from the co-ordination team before starting on any new work

5. Legal Framework

Rateability

5.1 The Lands Tribunal case, Cook (VO) v Ross Poultry (1982 RA 187), established that game farms were not within the exemption provisions for agricultural premises of what is now Schedule 5 to the Local Government Finance Act 1988. Additional attention was drawn to this class following the 1999 VT decisions in respect of Clover Lea Game Farm, Suffolk and the 2001 VT decision on Hi-Fly Game Hatchery, Lancashire.

5.2 Simply put, the land used for the raising of the birds does not come within the definition of agricultural land in paragraph 2 of Schedule 5 and, as a direct consequence, any buildings used in conjunction with that land cannot be exempt under paragraph 3. Any possibility of exemption under paragraph 5 is denied because the statutory definition of livestock (for these purposes) does not include game birds.

6 Survey requirements

6.1 The inspection of Game Farms should be arranged and referencers should ascertain what safety equipment they require from the occupier prior to the event. Difficulty may be experienced if they have been in contact with poultry in the immediate period prior to the inspection.

6.2 Buildings should be measured to GIA in line with the RICS Code of Measuring Practice – in addition pens should be both measured to GIA and per linear run of fencing, recording also the height and any kicker boards.

Game Farm operations

6.3 Although there are producers of duck and French partridge, the most commonly reared game birds are pheasants. Farmed game birds are supplied to customers as either day old chicks or as 6/7 week old poults.

6.4 Each year, at the end of January/beginning of February, the breeding stock is housed in winter pens at a ratio of 5 or 6 hen pheasants to each cock bird. As partridges are monogamous, they are housed in equal numbers.

6.5 Although there may be variations, as the winter draws to a close, the birds are usually moved into laying pens, in preparation for the start of egg production. By mid April, with the daylight hours getting longer, the hen birds will have started to go into lay. The eggs are gathered up daily and taken to the hatchery building(s), where they are checked for fertility and batched up ready for setting and incubation. The incubation period lasts about three weeks, after which the eggs are transferred for three days, or so, into a high-humidity hatcher. The extra humidity allows the chick to break out of the shell more easily.

6.6 Once viable, the chicks are either sold at a day old or moved on to brooder pens and grass runs for further growth into poults.

6.7 Generally, the production process will be brought to an end towards the end of June

Referencing

6.8 The essence of farming game birds satisfactorily is to keep the breeding stock in conditions that are as near to their natural habitat as possible, whilst trying to keep them free of disease and predation. All the runs and pens are designed with these principles in mind, although the apparent lack of quality in the construction of them might come as a surprise to the uninitiated. It is likely that the winter pens, laying pens, brooder pens and grass runs will be of lightweight timber framing, with chicken wire to the sides and aviary netting (to prevent damage to birds in flight) as a roof. Shelter, of some sort, will also be available to the birds. To prevent attack by predators, corrugated iron sheets or timber boards are often set into the ground around the sides. There may even be electric fencing to serve the same purpose. Each pen will have its own feeder and drinker to serve the birds nutritional needs. The hatchery and any other buildings are likely to be more substantial.

6.9 Whenever possible, try to ensure that referencing takes place during the late spring/early summer period in order to see the operation at its height. If the inspection is undertaken during the “quiet” time (autumn/winter) for egg / chick / poult production, it is possible that pens or runs may be dismantled for storage and renovation.

6.10 Be prepared to ask questions about what activities are undertaken at the premises throughout the year and consider going back, if needs be, during a more active time. Always ensure that an OS extract is taken to the site and that the full extent of the game farm enterprise is marked on it.

6.11 Record all the salient factual details of the game farm operation – the land it occupies; the sizes of and mode of construction of the buildings, pens and runs; the extent of the grass runs and the breed(s) of birds being raised.

6.12 Bearing in mind that the rearing season is during the period January to June, it is possible that some of the buildings/land are not used for game farm purposes throughout the whole of the year and that other uses may be properly exempt under the agricultural exemption provisions. In such cases, please ensure that all the facts concerning the various occupations of both land and buildings are fully documented. As each case will have to be determined on its own merits, it may be necessary to seek advice before making a valuation.

7. Survey Capture

7.1 Valuations should be carried out on the Non-Bulk Server Contractors Test Basis Application - under ‘other contractors basis valuations on a non generic basis’. This will allow rating list valuations to be captured.

7.2 Details of valuations including any settlements subsequently made must be recorded within the appropriate Scat information folder on the L Drive - L:\NDR_SCat Information

8. Valuation Approach

1 The general basis of valuation, particularly for larger rural sui generis units, should be the contractors test basis (CTB) of valuation; a comparative rental value should only be adopted where comparison of rents of agricultural buildings in the specific locality around AVD or smaller industry specific buildings largely located on grass land, are available. In the latter case the amortised costs of additional buildings like those set out in the cost guide will be added to the rental value of any traditional agricultural industrial buildings.

It was found for the 2010 rating lists that for the larger game farm enterprises more satisfactory and consistent valuations were achieved using the contractor’s basis.

8.2 Game Farms will normally comprise the following buildings and enclosures:-

Hatcheries and Game Rearing Houses

Brooder Houses

Rearing Pens and Night Shelters

Raised Floor Partridge and Pheasant Rearing Boxes

Costs for the above buildings are set out in the list appropriate Cost Guide and reflect fully erected on site costs.

8.3 Stage 2 adjustment should not reflect the age of buildings but physical and functional obsolescence only.

External Works

8.4 Generally, there will be little or no external works additions; possible exceptions may be gravel or concrete roads. Heating is usually minimal relying on propane blowers.

Land Cost – Stage 3

8.5 Land and Buildings used for Game Farming are not exempt agricultural premises under the provisions set out in para 2(1) and Para 3(a) – nor indeed under any of the agricultural exemption paragraphs in Sch 5 LGFA 1988. Grass and exercise areas are likely to be in the ranges as suggested by the relevant Practice Note unless there is local evidence of higher rates being applied.

9. Valuation Support

9.1 All enquiries should be directed to the NSU Specialist or Technical Advisor for the Unit.

1. Market Appraisal

Shooting game is thriving in the UK, particularly now that other types of shooting are banned or severely restricted. The industry is now reportedly worth over £1.6 billion each year with 83% of shoots relying on hand reared game releases to supplement wild stocks. Pheasants, partridge and some duck have been reared on game farms for decades to re-stock shoots.

In the UK there are around 300 breeders registered with the Game Farmers’ Association (GFA), mostly rearing pheasants and partridges. Some retain a breeding flock to produce their own eggs. Others buy eggs or day-old chicks and rear them on. The only innovation since preparation of the last Revaluation is the introduction of raised boxes for pheasant harems (raised boxes have been used for partridges for a long time). Raised units produce cleaner eggs, significantly reduce disease to chicks and keep laying birds in a cleaner condition, especially in bad weather. As there is only one cock bird in each unit, they prevent cock birds from fighting for the hens. The downside is that raised units are necessarily small and close confinement of the birds can lead to severe feather-pecking without proper management.

Most game farmers in the UK belong to the GFA which represents their interests. The Association lobbied Parliament and the Welsh Assembly in Cardiff to approve almost identical codes of practice for the rearing of game birds in England and Wales. These are designed to ensure that game rearing is always carried out to the highest welfare standard. For all practical purposes, game rearing must be carried out to the same high welfare standard throughout the UK and each national code is the subject of the relevant animal welfare legislation for the country concerned. Whilst a breach of the code is not an offence in itself, the courts must have regard to what the code says, when determining animal welfare offences. The GFA rules require members to follow the Code which has given the industry official recognition as a legitimate and important activity in the UK.

Caseworkers should be aware that the industry is extremely security sensitive. This relates not only to bio-security but threats against the farms themselves.

2. Changes from the last Practice Note

The 2010 PN set out a hybrid rentals/Contractor’s Basis approach, however, it was found that the larger game farm enterprises were more satisfactorily valued using the CTB methodology.

For the 2017 lists a rentals approach should only be used where there is comparable evidence of rents for agricultural buildings in the specific locality around AVD or smaller industry specific buildings largely located on grass land, are available. In the latter case the amortised costs of additional buildings like those set out in the cost guide will be added to the rental value of any traditional agricultural industrial buildings.

3. Ratepayer Discussions

No discussions have been held with the industry

4. Valuation Scheme

The general basis of valuation particularly for larger rural sui generis units should be the contractors test basis (CTB) of valuation, a comparative rental value should only be adopted where comparison of rents of agricultural industrial buildings in the specific locality around AVD or smaller industry specific buildings largely located on grass land, are available. In the latter case the amortised costs of additional buildings like those set out in the cost guide will be added to the rental value of any traditional agricultural industrial buildings.

It was found on the 2010 rating lists that the larger game farm enterprises were more satisfactorily valued using the CTB methodology.

Game Farms will normally comprise the following buildings and enclosures:-

Hatcheries and Game Rearing Houses

Brooder Houses

Rearing Pens and Night Shelters

Raised Floor Partridge and Pheasant Rearing Boxes

Costs for the above buildings are set out in the 2017 Cost Guide and reflect fully erected on site costs.

Stage 2 adjustment should not reflect the age of buildings but physical and functional obsolescence only.

External Works

Generally, there will be little or no external works additions; possible exceptions may be gravel or concrete roads. Heating is usually minimal relying on propane blowers.

Land Cost – Stage 3

Land and buildings used for Game Farming are not exempt agricultural premises under the provisions set out in para 2(1) and Para 3(a) – nor indeed under any of the agricultural exemption paragraphs in Sch 5 LGFA 1988. Grass and exercise areas are likely to be in the range £/120 -£200 per acre unless there is local evidence of higher rates being applied.

Data capture/ storage

Valuations should be carried out on the Non-Bulk Server Contractors Test Basis Application - under ‘other contractors basis valuations on a non generic basis’. This will allow rating list valuations to be captured.

In addition, details of valuations including any settlements must be recorded within the appropriate Scat information folder on the L Drive - L:\NDR_SCat Information0

Practice Note 1 : 2010 : Game farms

GAME FARMS

CO-ORDINATION ARRANGEMENTS

As a class, Game Farms are subject to the co-ordination arrangements outlined in the relevant Practice Notes to this Section.

DEFINITION

For the purposes of this Section, the term Game Farm should be taken to mean any operation that raises game birds in large-scale numbers on a commercial basis for sale.

GAME FARM OPERATIONS

Although there are producers of duck and French partridge, the most commonly reared game birds are pheasants. Farmed game birds are supplied to customers as either day old chicks or as 6/7 week old poults.

Each year, at the end of January/beginning of February, the breeding stock is housed in winter pens at a ratio of 5 or 6 hen pheasants to each cock bird. As partridges are monogamous, they are housed in equal numbers.

Although there may be variations, as the winter draws to a close, the birds are usually moved into laying pens, in preparation for the start of egg production. By mid April, with the daylight hours getting longer, the hen birds will have started to go into lay. The eggs are gathered up daily and taken to the hatchery building(s), where they are checked for fertility and batched up ready for setting and incubation. The incubation period lasts about three weeks, after which the eggs are transferred for three days, or so, into a high-humidity hatcher. The extra humidity allows the chick to break out of the shell more easily.

Once viable, the chicks are either sold at a day old or moved on to brooder pens and grass runs for further growth into poults.

Generally, the production process will be brought to an end towards the end of June

RATEABILITY

The Lands Tribunal case, Cook (VO) v Ross Poultry (1982 RA 187), established that game farms were not within the exemption provisions for agricultural premises of what is now Schedule 5 to the Local Government Finance Act 1988. Additional attention was drawn to this class following the 1999 VT decisions in respect of Clover Lea Game Farm, Suffolk and the 2001 VT decision on Hi-Fly Game Hatchery, Lancashire.

Simply put, the land used for the raising of the birds does not come within the definition of agricultural land in paragraph 2 of Schedule 5 and, as a direct consequence, any buildings used in conjunction with that land cannot be exempt under paragraph 3. Any possibility of exemption under paragraph 5 is denied because the statutory definition of livestock (for these purposes) does not include game birds.
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REFERENCING

The essence of farming game birds satisfactorily is to keep the breeding stock in conditions that are as near to their natural habitat as possible, whilst trying to keep them free of disease and predation. All the runs and pens are designed with these principles in mind, although the apparent lack of quality in the construction of them might come as a surprise to the uninitiated. It is likely that the winter pens, laying pens, brooder pens and grass runs will be of lightweight timber framing, with chicken wire to the sides and aviary netting (to prevent damage to birds in flight) as a roof. Shelter, of some sort, will also be available to the birds. To prevent attack by predators, corrugated iron sheets or timber boards are often set into the ground around the sides. There may even be electric fencing to serve the same purpose. Each pen will have its own feeder and drinker to serve the birds nutritional needs.

The hatchery and any other buildings are likely to be more substantial.

For a view of the sort of buildings likely to be encountered see the relevant Practice Note

Whenever possible, try to ensure that referencing takes place during the late spring/early summer period in order to see the operation at its height. If the inspection is undertaken during the “quiet” time (autumn/winter) for egg/chick/poult production, it is possible that pens/runs may be dismantled for storage and renovation.

Be prepared to ask questions about what activities are undertaken at the premises throughout the year and consider going back, if needs be, during a more active time. Always ensure that an OS extract is taken to the site and that the full extent of the game farm enterprise is marked on it.

Record all the salient factual details of the game farm operation – the land it occupies; the sizes of and mode of construction of the buildings, pens and runs; the extent of the grass runs and the breed(s) of birds being raised.

Bearing in mind that the rearing season is during the period January to June, it is possible that some of the buildings/land are not used for game farm purposes throughout the whole of the year and that other uses may be properly exempt under the agricultural exemption provisions. In such cases, please ensure that all the facts concerning the various occupations of both land and buildings are fully documented. As each case will have to be determined on its own merits, it may be necessary to seek advice before making a valuation.

VALUATION

A quasi contractors test/rental basis should be used for this class. The valuation of individual hereditaments will depend on the type and construction of the buildings employed and prevailing local values of agricultural industrial sheds in relation to larger buildings, where rental comparison can be made. However, smaller buildings like Pheasant, Brooder and rearing Houses, Shelter Pens and Other Pennage should be valued having regard to a shortened CTB approach (see below). Some valuation co-ordination will need to be established both within and between Groups – see also the Practice Note that accompanies this Section.

PRACTICE NOTE 1 : 2008

REVALUATION 2008 (updated 2014)

Game Farms

1. Co-ordination

1.1 This is a Group Class. Responsibility rests with the appropriate GVO for implementing the scheme set out in this Practice Note and Groups must ensure effective coordination. See Rating Manual – Section 6: Part 1:3.5.

1.2 For further information see Rating Manual - Section 6: Part 3.

1.3 The R2010 Special Category 112G should be used.

1.4 The Group Class folder on the Group P Drive should be used to record the details of each valuation adopted and any settlements that are subsequently made.

Valuation Guidance

As explained in the RM Vol 5 Section *** a quasi rental value/contractors test basis should be adopted whereby larger agricultural industrial buildings are valued on a rentals basis according to the rental evidence at AVD or on tone and smaller industry specific buildings which will largely be located on grass land are valued accordingly:-

The house provides a modern, easy to manage, pheasant-rearing house for 1800 day-old pheasants in a stable environment with a high insulation factor giving low condensation and a stable temperature through cold nights of May and the heat of July. This stability helps to reduce stress from temperature fluctuations and makes the withdrawal of heat less stressful.

Constructed of a steel frame painted to prevent rusting, attached to which are panels consisting of an outer skin of 6.5mm exterior plywood, 25mm layer of insulation and inner skin of twin wall plastic to provide a further 2.5mm of insulation also making cleaning and pressure washing easy. The lowest 300mm of the building is of 18mm Tanalised plywood to provide a hard wearing rot resistant base at lower level. The roof is of plastic coated profiled roof sheeting with 25mm insulation and 2.5mm plastic sheeting to provide further insulation. Windows and vents are provided to allow fresh air to circulate. The rigid steel frame and overall weight of 800kg allows these houses to be lifted by tractor and they can be picked up, pressure washed, and set up for reuse in less than an hour. Their solid construction also avoids dis-assembling and storing indoors during winter.

The houses are supplied with the welded frames ready drilled for bolting together and can be lifted by two people. The wall panels then bolt into the frames, the roof trusses drop in and the roof is bolted and screwed on; the insulation and liner is then fitted. No special tools are required. If used with a modern drinker and feeding system these houses form the basis for an easy rearing system that should allow one man to manage ten or more houses and only requires chicks to be handled at the biting stage between day old and release at 6 or 8 weeks.

Advanced Game Rearing Houses/Hatcheries

A steel-framed building, using composite insulated panels, similar to the panels used in cold stores. Provides a game rearing building with a higher standard of hygiene and lower maintenance cost. The internal lining is steel sheet with a 40mm insulated core and an external steel sheet.

The internal lining is impervious to dirt and water and the external surface is maintenance free. The internal partition is made from a steel frame and has a steel sheet to ground level

The building can be lifted with a machine and can be fitted with floor panels.

Rental Value inclusive of land probably equates to cost having regard to short life span.

Shelter Pens

Designed to provide a sheltered safe environment for chicks from 10 days onwards to enable them to leave the warmth and security of their house and start the hardening off process that will enable them to survive in the wild.

The pen is constructed of 25mm box steel frames put together to form two pens 4.8 x 2.3m; each half of the house having its own pen. The roof is of profiled steel roofing fitted to two steel frames. The side and end frames have a 600mm high steel panel with rigid plastic netting above, preventing draughts and strong winds at low level whilst allowing chicks to experience normal daytime temperatures. Once the trap is lifted in the adjoining rearing house wall chicks will move freely back and forward between house and pen spending more and more time outside, as they grow older. A trap door is fitted to the end of the pen to allow chicks to move into large pens when they are four weeks old.

Generally, there will be little or no external works additions; possible exceptions may be gravel or concrete roads. Heating is usually minimal relying on propane blowers.

Land Cost

Grass and exercise areas in the range £/acre

It is possible that local variations may produce value levels that differ significantly from these samples.

Section 434: Appendix 1 : Density of Game Farm Premises

Number of premises in GB registered as keeping each species type.

Species

Number of Premises

Pheasants and Partridges

9,999

Guinea fowl

1,674

Quail

610

Pigeons (reared for meat)

24

Total

12,507

Note: The number of premises total is extracted from the DEFRA “Density of Premises and Poultry Species” report based on figures from the GB Poultry Register. NB. Some premises keep more than one species of poultry and for this reason the species-specific premises counts add up to greater than the total number of premises registered.

In response to Parliamentary Questions, the Secretary of State for Environment, Food and Rural Affairs, Mr. Tom Bradshaw said that the definition used by his Department for each production was as follows:-

“The Department has not produced a formal definition for each production type listed. In principle, it is for the poultry keeper to identify the production type applicable to the birds on their premises.

However, in the case of those production types applicable to shooting, the ordinary meaning of the terms used may be taken as follows:

Breeding for shooting—production system where cock and hen birds are accommodated in captivity, generally either in groups (pheasants) or in pairs (partridges), for the purpose of egg production.

Rearing for shooting—production system where chicks are reared in captivity, either indoor in permanent buildings or in outdoor enclosed pens. The birds may be sold on to a number of other premises for releasing for shooting, or gamekeepers may rear their own birds and release them for shooting on the same premises.

Releasing for shooting—system where birds are held in large pens for a period of acclimatisation ranging from a few days to a few weeks before release.

For all production types, the poultry keeper is required to state when the premises is usually stocked during the year and is instructed not to include any bird in more than one category.

There are a number of factors involved in the difference between the number of birds identified as being reared for shooting and the number released for shooting. It is estimated that approximately 50 per cent. of birds are reared on recognised game farms and subsequently sold on to a number of shoots. These game farm premises would fall into definition (2) above. The remaining birds are either reared and released by gamekeepers on their own premises, so falling into definition (2) above, or purchased and brought onto the shoot premises for a short captive period of acclimatisation prior to release for shooting, so falling into definition (3). There may be premises practising a combination of the above, for example, rearing a certain number of birds and also purchasing birds for release.

Despite an instruction not to include any bird in more than one category for the purposes of the Great Britain Poultry Register, a number of keepers ‘double-counted’ by including the same birds in more than one production type. This error has now been rectified. Another form of double-counting has occurred where the same birds have been registered by the game farm at rearing, and by the shoot following purchase. This has produced an overestimate in total bird numbers.

In relation to:-

the number of establishments that are registered for the annual release of (a) 10,000, (b) 25,000, (c) 50,000, (d) 75,000 and (e) 100,000 partridges.